The United States

1

• The United States
• Mexico

Sharing more than just a Border September 26,
2005
Cory Simek Program Officer United States
Department of Commerce
2
Mexico A Snap Shot

• Pop 100.3 million
• GDP per capita - 5945
• 74 percent urban
• Under 20 - 44
• Wealthy - 5
• Upper Middle - 18
• Middle Class - 37
• Poor - 40

3
Our Second Most Important Market
Source U.S. Census Bureau, U.S. Department of
Commerce.
4
U.S. Exports to Mexico
Source International Trade Administration, U.S.
Department of Commerce.
5
Foreign Direct Investment in Mexico
Source Secretariat of Economy, General
Directorate of Foreign Investment.
6
Foreign Direct Investment in Mexico by Country
Source Mexicos Secretariat of Economy, General
Directorate of Foreign Investment.
7
Mexicos 2004 Bilateral Trade
Source Mexicos Secretariat of Economy.
8
Mexico - A Large and Complex Market
Tijuana
Monterrey
Guadalajara
Mexico City
9
Mexico Outlook for 2005

• Speed of U.S. recovery Nearly 85 of Mexicos
  Exports go to the U.S. market
• GDP growth 3.5 (4.1 in 2004)
• Inflation - 3.8-4.4 (5.2 in 2004)
• Strong Peso to weaken slightly
• Macroeconomic stability
• Remittances, oil and tourism
• Presidential Elections July, 2006

10
The Impact of NAFTA

• Decrease in tariff on U.S. exports to Mexico
• More than 85 of U.S. Goods enter duty-free
• By 2008, 100 will enter duty-free
• Elimination of Barriers
• Institution of Dispute Resolution Process

11
NAFTA Today

• Greatest opportunity for economic growth
• U.S.-Mexico bilateral trade increased 217 from
  USD 88 billion in 1993 to USD 279 billion in 2004
• Elimination of Barriers in Key Sectors
  Automotive Banking Telecom and, Government
  Procurement, to name a few

12
Future of NAFTA

• Mexico, like the United States fears losing its
  manufacturing sector to other countries
• Synergies in cooperation of NAFTA partners to
  penetrate global markets
• Integration of the North American market to
  compete with anyone, anyplace in the world

13
The Market for US Exporters Best Prospects

• Automotive Parts and Supplies
• Electronic components
• Energy Sector
• Airport Ground Support Equipment
• Travel Tourism Services
• Plastic Materials/Resins
• Telecommunications Equipment

14
More Best Prospects

• Environmental Sector
• Low-Income Housing Rapid/Prefab Construction
• Safety Security Equipment/Services
• Hotel Restaurant Equipment
• Intermodal Transportation Equipment
• Education Training Services

15
Selling to Mexicos Manufacturing Sector

• Leading manufacturing sectors autos/ auto
  parts computer hardwareelectronic components
  home appliances tool,die and moldings
• NAFTA and investment in Mexico
• Maquiladoras U.S. and foreign firms

16
The Manufacturing Sector

• Imports 87 billion of machinery,
• components and inputs annually
• 56,000 US companies supply this sector
• Why not you?

17
Marketing to Manufacturers in Mexico

• Videoconference with buyers
• Monthly research reports
• Qualified trade leads, and more!
• How do you sign up?
• Visit www.buyusa.gov/mexico/en

18
Some Tips on Mexican Business Customs

• Mexico has its own customs.
• Importance of establishing personal relationships
  before business is done.
• Breakfast, Lunch and Dinner!
• Time is Flexible
• Patience pays off
• Physical contact un abrazo you can (air)
  kiss the ladies!

19
Business CustomsSome Hazards

• Indirectness - difficulty in saying no
• Push for easy credit terms be careful
• Follow up quickly with your Mexican partner
  there is lots of competition not an American
  preserve
• Use a qualified interpreter if needed
• Keep in contact visit, phone not just e-mail

20
Mexico Monthly WebExes

• Series of Seminars on the Mexico Market
• Local and U.S. based experts
• Learn about the market from your desk!
• Next Briefing The Mexican Way of Doing Business
• October 20 at 12 noon Eastern Time
• Sign up on line
• https//www.buyusa.gov/mexico/en/sharing_more_tha
  n_a_border.html

21
US Commercial Service

• Agency of Department of Commerce
• Mission is primarily to help small and
• medium size, export-ready companies
• to enter new markets, and to protect
• US Business interests abroad
• Network of 100 offices in the US and
• 150 world-wide

22
Products and Services

• For US Firms
• Trade Shows and Trade Missions
• Market Research
• List Builder
• International Partner Search
• Matchmaking Gold Key Service
• Commercial News USA
• International Company Profile
• Advocacy

23
Products and Services

• For Mexican Firms
• International Buyer Program
• Commercial News USA
• Business Service Provider Program

24
Contact

• Cory Simek
• US Export Assistance Center
• Saint Louis, Missouri
• Phone [phone]
• Cory.Simek_at_mail.doc.gov
• www.buyusa.gov/mexico/en
• www.export.gov/comm_svc/eac.html